Remortgaging - debt consolidation

[jodesxx]

How does this work? What LTV do they usually allow you to have?

we tried to remortgage to build extension but lender down valued so couldn’t get the money we wanted. We have taken out various loans and credit cards to pay for work. Work is nearly finished and we want to remortgage to pay it all off.

We need to borrow £50/£60K for debt consolidation, £80K for further building work (additional extension, detached garage and garden work I.e wall, patio, driveway) and then £10K for IVF (used inheritance which we were going to keep back for this).

Our combined income is £95K an we’d be looking to around the 90% LTV value work. We both have car loans

I doubt it’s a popular opinion but I wouldn’t be borrowing for a new garage or any garden work in your position.

It surely makes sense to focus on remortgaging to consolidate debts and trying to prioritise IVF especially given you don’t know how many rounds you might need.

You should be aware that a lot of people doing what you're proposing going to run up further debts, exacerbating their financial difficulties, especially if you lose an income.

Usually because they continue overspending or haven't done a comprehensive budget review to check they can afford the new repayments. Especially if your IVF is successful and you face the costs of a child or two.

Due to the longer repayments it's also likely to be an expensive solution even if the interest rate is lower.

As you're already in significant debt you might not get accepted anyway because of affordability. They don't know you'll actually consolidate your debts so might assume you won't and spend some of the borrowed extea money instead.

Don't do anything until you have looked at 0% cards and strict budget review to see if you can get out of debt without transferring the debt onto your mortgage.

Many lenders will have a max 80% LTV if debt debt consolidation is involved with exceptions only for specific situations - you need to check what your lender allows.

It depends what mortgage product you have and the lender's policy.

Is it likely to be approved now? Is further building work absolutely necessary right now?

That’s a huge amount to borrow on you salary and lyv. What is your current mortgage?

Honestly this all sounds like a shambles. It sounds like you’re living wildly beyond your means and it will all catch up with you. Spending six figures (that you don’t have) on home improvements while looking down the barrel of IVF could politely be described as ‘unwise’. Is all the house work really essential or is the house liveable as it is?

^ This!

Plus - is the 90% LTV based on what you think it’s worth or what it’s actually valued at?

I just can't imagine adding all that debt on to a mortgage. You will end up paying back double over term. Madness.
Get that 60k you owe paid off as quick as possible before you take on anything else. You don't even own your cars :/😦

Me too. A child and then taking a good amount of maternity leave is more important than a garage.